“We are looking at up to $2.5 billion of investment over the next four years in our green portfolio, depending on how the market evolves,” said Subramanian Sarma, senior executive vice-president (energy), L&T.
On Saturday, L&T commissioned its first hydrogen generation plant at the Hazira manufacturing facility in Gujarat. The plant will produce 45 kg of green hydrogen daily through an alkaline electrolysis process and use it for captive consumption in the company’s local manufacturing complex.
The company has been evaluating prospects in green energy areas including green hydrogen, battery storage and offshore wind, among others, as it seeks to reduce its presence across the fossil fuel space and build new businesses around green energy.
Agencies“We will be creating assets through our own investments. We will enter into manufacturing of key technological instruments which would be electrolysers, advanced cell batteries, fuel cells, among others,” Derek M Shah, head, green manufacturing and development, L&T.
Over the past few months, the company partnered with
and ReNew Power to form a joint venture company to develop green hydrogen projects across the country. It has also tied up with the Indian Institute of Technology-Bombay to jointly pursue research in the green hydrogen segment. According to L&T’s FY22 annual report, the size of the green portfolio of businesses is ₹38,843 crore, which is 38.2% of standalone revenues in FY22 compared to 33.2% in FY21.
Offshore wind segment
Leveraging its offshore expertise, L&T is carving out a part of its hydrocarbon team to focus on the emerging business opportunities in offshore wind farms, which will address renewable energy requirements. “India has been implementing a lot of onshore wind farms but land is an issue. So, there is an opportunity for India to look at offshore wind farms,” said Sarma, adding that the company is looking at the Indian as well as the international market in this segment. “We have a lot of fabrication capability so there are a lot of things we can fabricate for the offshore wind farm component and supply from here. We have the capability as we do a lot of offshore projects for
and Saudi Aramco,” Sarma added.
The company plans to supply products like wind farm foundations and other modules for offshore wind farm projects and e-houses (customized, pre-assembled and pre-tested modular power substations). Sarma, however, clarified that the company will not enter manufacturing of wind turbines but will make other components including, the towers and the wind turbine jackets.
“Our team (is only) 15-20 people, but very experienced and knowledgeable,” added Sarma.
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